Question

The total consumption of sugar was 20 kg per month for a family. As the price of sugar increased by 35%, the family reduced its consumption so that the expenditure on sugar is increased only by 8%. By how much was the consumption of sugar per month reduced due to increase in the price of sugar?
1. 2.5 kg
2. 4 kg
3. 5 kg
4. 6 kg

Answer 1

Correct Answer - Option 2 : 4 kg

Given:

The total consumption of sugar was 20 kg per month for a family.

the price of sugar increased by 35% and the expenditure on sugar is increased only by 8%

Concept:

Consumption × Price = Expenditure

Increment/Decrement in percentage = {(100 ± increase/decrease)/100} × Value

Solution:

Let the Price of sugar be Rs. 100 per kg

So, Initial expenditure is

⇒ 20 × 100 = Rs. 2000

The increased price of the sugar per kg is

⇒ (135/100) × 100 = Rs. 135

The increased Expenditure is

⇒ (108/100) × 2000

⇒ 2160

Now,

⇒ Consumption = Expenditure/Price

⇒ Consumption = 2160/135

⇒ Consumption = 16

Reduction in consumption is 20 - 16 = 4 kg

∴ the consumption of sugar per month reduced is 4 kg.